Zillow CEO Spencer Rascoff: Pulling Back the Veil on the Housing Market
Episode Description
Online real estate marketplace Zillow has brought to home buying and selling what a previous generation of travel websites provided to shoppers wanting to compare the prices of hotels, rental cars and airline flights -- transparency. But finding data that is reliable across the board can be hard to come by, according to Zillow CEO Spencer Rascoff. And the key is not just simply to offer the information, Rascoff said during a recent conversation with Knowledge@Wharton and Wharton real estate professor Susan Wachter; it's about the level of accuracy gained from the various sub-models the company's software incorporates. 📂 Real Estate;Leadership
Brief Summary
Susan Spencer and Spencer Rascoff discuss Zillow's role in the recovering housing market and the company's innovative business model.
Key points
- Housing Market Recovery. Spencer reveals that the housing market is recovering with 16 months of appreciation.
- Zillow's Unique Business Model. Spencer explains how Zillow's model differs from traditional real estate transactions.
- The Zestimate Explained. Spencer describes how Zillow calculates home values through a complex algorithm.
- Zillow's Rental Strategy. Zillow aims to dominate the rental market by giving away property management software.
- Vision for Zillow's Future. Spencer shares his definition of success for Zillow and its brand longevity.
- Zillow's Market Perception. Only 12% name Zillow as a real estate website, highlighting a significant opportunity.
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Episode highlights
- Housing Market RecoverySpencer reveals that the housing market is recovering with 16 months of appreciation.“Housing is back!”0:41Apr 30, 2013
- Zillow's Unique Business ModelSpencer explains how Zillow's model differs from traditional real estate transactions.“We sell advertising and software tools to professionals.”3:45Apr 30, 2013
- The Zestimate ExplainedSpencer describes how Zillow calculates home values through a complex algorithm.“Zillow has become a living database of all property information in the US.”6:27Apr 30, 2013
- Zillow's Rental StrategyZillow aims to dominate the rental market by giving away property management software.“We hope to create the marketplace to basically superset Craigslist.”15:28Apr 30, 2013
- Vision for Zillow's FutureSpencer shares his definition of success for Zillow and its brand longevity.“My definition of success is creating an enduring brand.”17:03Apr 30, 2013
- Zillow's Market PerceptionOnly 12% name Zillow as a real estate website, highlighting a significant opportunity.“That would be depressing, but actually I get very excited about that opportunity.”18:04Apr 30, 2013
- Bringing Transparency to Real EstateZillow is helping to undo contradictions in market information.“This contradiction is being undone.”18:22Apr 30, 2013
